'Stonking fat cheques' for City staff

Thousands of staff at Credit Suisse First Boston were celebrating after being told their bonuses for 2000 were up by at least 30%.

The news kicked off a fresh round of the bonus season, when workers for European investment banks discover how much they are valued by their superiors. CSFB is said to have done particularly well compared with its peers.

'A stonking fat cheque,' was one delighted banker's description of the bonus.

Over the next fortnight, UBS Warburg, Deutsche, Dresdner Kleinwort Wasserstein, ABN Amro, Commerzbank, Société Générale and Paribas will be informing staff of their bonuses. ING Barings, 500 of whose staff were laid off today, will hand out decisions tomorrow.

The actual cheques will be paid into bank accounts at the end of February and could ignite a mini-boom at the top end of the London property market.

US banks Goldman Sachs, Morgan Stanley, Merrill Lynch, Chase Morgan and Salomon Schroders Smith Barney have already revealed figures to their staff. Merrill bankers, outside the bond department, did well while many at Morgan Stanley were disappointed.

Bankers generally receive at least half their annual remuneration in bonuses, reflecting their own performance and that of their employer. Since the summer, expectations have been down.